Rate of Interest Structure Based on the Base Rate 10.20% W.E.F. 20.01.2014 Would Be As Under

ANNEXURE A:

HEAD OFFICE

Large /Mid Corporate Credit

Rate of Interest Structure based on the Base Rate 10.20% w.e.f. 20.01.2014 would be as under:

Commercial Advances w,e.f. 20.01.2014

i Limits upto Rs 10 lakhs :ExistingRevised

Upto Rs.10 lakhs (WC/STL)14.25% 14.20%

Upto Rs.10 lakhs TLN 15.50% 15.45%

In case of various other loans, the rates given in following pages may be followed.

II. Limits Rs.10 lakhs& above (linked to Credit Rating of the borrower) :

Interest rates applicable to commercial advances for limits Rs.10 lakhs & above for

(i)working capital including WCDL facilities and Short Term loans (upto 1 year) and

(ii)Term Loans above 1 year are given below :-

Working Capital including WCDL & Short Term Loans (upto 1 year)

(Classification based on Aggregate limits)

MS1 / MS2 / MS3 / MS4 / MS5 / MS6 / MS7 / MS8 / MS9 / MS10
RoI / MODEL / SBS1 / SBS2 / SBS3 / SBS4 / SBS5 / SBS6 / SBS7 / SBS8 / SBS9 / SBS10
Commercial Advances / New RoI % / New RoI % / New RoI % / New RoI % / New RoI % / New RoI % / New RoI % / New RoI % / New RoI % / New RoI %
10Cr and above & below 30Cr / Existing MS Hybrid / 13.30 / 13.55 / 13.85 / 14.10 / 14.35 / 15.40 / 15.90 / 15.95 / 16.45 / 16.45
5Cr and above & below 10Cr / Existing MS Hybrid / 13.30 / 13.55 / 13.85 / 14.10 / 14.60 / 15.40 / 15.90 / 15.95 / 16.45 / 16.45
1Cr and above & below 5Cr / ExistingSBS / 13.30 / 13.55 / 14.10 / 14.35 / 14.60 / 15.40 / 15.40 / 15.95 / 16.45 / 16.45
10 lakhs and above and below 1Cr / ExistingSBS / 13.55 / 13.80 / 14.10 / 14.35 / 14.60 / 15.40 / 15.40 / 15.95 / 16.45 / 16.45
Hybrid LC 1 / Hybrid LC 2 / Hybrid LC 3 / Hybrid LC 4 / Hybrid LC 5 / Hybrid LC 6 / Hybrid LC 7 / Hybrid LC 8 / Hybrid LC 9 / Hybrid LC 10
30Cr & above or turnover>500Cr / Hybrid LC / 12.80 / 13.05 / 13.35 / 13.60 / 13.85 / 14.15 / 14.40 / 14.95 / 16.45 / 16.45
EC1 / EC2 / EC3 / EC4 / EC5 / EC6 / EC7 / EC8 / EC9 / EC10
30Cr & above or
turnover 300Cr to 500Cr / Hybrid LC / 13.05 / 13.30 / 13.60 / 13.85 / 14.10 / 14.40 / 14.90 / 15.20 / 16.45 / 16.45
30Cr & above or
turnover 150Cr to 300Cr / Hybrid LC / 13.30 / 13.55 / 13.85 / 13.85 / 14.35 / 14.65 / 15.15 / 15.45 / 16.45 / 16.45

Note:- for accounts with limits of Rs. 30 crore and above but turnover below Rs. 150 crore, the applicable RoI would be same as RoI applicable for accounts with turnover of Rs. 150 crore – Rs. 300 crore)

RG1 / RG2 / RG3 / RG4 / RG5 / RG6 / RG7 / RG8 / RG9 / RG10
All Infra/ Greenfield / 12.80 / 13.30 / 13.85 / 14.35 / 14.85 / 15.15 / 15.65 / 16.45 / 16.45 / 16.45
Comm. Real Estate / 14.05 / 14.05 / 14.35 / 14.60 / 14.85 / 15.40 / 15.65 / 16.45 / 16.45 / 16.45

Aforesaid rates are linked with the Base rate, presently 10.20% p.a. While mentioning the rate of interest, branches must mention linkage with Base rate.

RG (Risk Grade) is generic name for all infra/Greenfield model risk grades.

For eg. - Credit rating for road project to be read as Road 1-Road 10.

For pricing in Hybrid Model please factor the marks allotted for pricing factors as mentioned in Branch Circular No.104/96 dated 16.11.2010 and Branch Circular No.105/20 dated 29.04.2011.

B.Government Advances
1.GoI & State Govt / 11.80%
2.Guaranteed by State Govt / 11.80%

RoI applicable for Public Sector

Tenor Premium to be added for above 1 year rates

LC1 / LC2 / LC3 / LC4 / LC5 / LC6 / LC7 / LC8 / LC9 / LC10
11.80% / 11.80% / 12.10% / 12.10% / 12.35% / 12.90% / 13.15% / 13.45% / 13.95% / 14.45%

Tenor Premium to be added for above 1 year rates as under

Tenor / Premium
Above 1 year – upto 7 years / 0.50% p.a.
Above 7 years – upto 15 years / 0.75% p.a.

Tenor should include moratorium period.

Credit rating based on provisional balance sheet can be taken into account for fixing interest rates only when there is deterioration in credit rating i.e. say from MS2 to MS3. But in case of improvement in rating, based on provisional Balance Sheet, the rating is to be confirmed based on Audited Balance sheet before giving effect of lower RoI.

Notes:-

a)Branches are to follow the instructions contained in Branch Circular No.93/154 (Subject : C&IC/99-2000/56) dated 07.12.1999 for levying of penal interest. The gist of guidelines in respect of levying penal interest are as under :

1. No penal interest should be charged for advance accounts upto the sanctioned limit of Rs.25000/-

1. Maximum penal that can be levied in an account is 2% p.a. covering all types of default and should be charged on the outstanding balance and not on sanctioned limit.

1. The aberrations for which penal interest can be levied are as under :

• Non-submission of various statements (stock/book-debts, QIS etc) and financial data (Balance Sheet, CMA etc)

• Irregularities in accounts and default in repayment of loan.

• Default in complying with terms of sanction.

1. The penal interest should be levied with discretion and selectively within the said guidelines. It should act as a corrective measure rather than a punitive action.

III. Discounting of Future Cash Flows/Lease Rentals :

(Ref. Br.Cir. No.97/100 dated 16.10.2003)

Existing / Proposed
w.e.f. 20.01.14
a)Landlords having lease agreements with MNCs/PSUs/Banks – Public Sector, Private Sector, Foreign Banks, Top rated Corporates - Base Rate +4.00% / 14.25% / 14.20%
b) Others - Base Rate + 5.00% / 15.25% / 15.20%

IV. Trade Finance (For select customers/transactions)

i. / Bills backed by LCs of Banks within the exposure limit given by Risk Mgmt Dept, HO / Rates w.e.f.
01.01.2014 to 31.03.2014*

• Not exceeding 90 days

/ Base rate+0.25 subject to
Minimum 10.50%

• 91 days to 180 days

/ Base rate +0.50% subject to

Minimum10.75%

Revised w.e.f. 20.01.2014
ii. / Bills drawn by customers whose rating is LC 1 to 2 & SBS 1 to 3

• Not exceeding 90 days

/

14.05%

• 91 days to 180 days

/

14.55%

iii / Customers with risk rating LC 3 to 4 & SBS 4 to 6 and above for bills drawn on corporates and PSUs
(Br. Cir. Nos.98/157 dated 01/11.2004)

• Not exceeding 90 days

/

14.35%

• 91 days to 180 days

/

14.85%

*Rates are valid from 01.01.2014 to 31.03.2014 only. The rates are being revised on quarterly basis and being communicated to ZOs/LCBs/MCBs by C&IC, HO

Note

1. The above rates are the minimum. Hence, higher rates may be negotiated by the branches/ZOs with borrowers to maximise yield. While increasing the volume of bills business branches/Zos should ensure that it does not lead to reduction in higher rate of interest.

1. Precautions to be taken and guidelines to be followed while discounting the bills under Letter of Credit will have to be strictly in terms of guidelines issued vide our Branch Circular No. 102/116 dated 18.09.2008, 102/196 dated 10.02.2009, 102/215 dated 16.03.2009, 103/73 dated 27.07.2009,104/30 dated 25.05.2010, 105/41 dated 08.06.2011 and 105/169 dated 27.01.2012

1. The rate is to be applied only when the bills are realised as per the original tenor of the bill. In case of bills not realized as per the original tenor of the bill, interest is to be recovered at 2% over the applicable rate for the particular bill from the due date, for the overdue period.

V.Rate of Interest on Temporary Overdrafts/Temporary Overlimits and

charges for against effect payments :

1. Temporary Overdraft/Overlimit

(i)In case of temporary overdraft in current account 18.70%p.a. to be charged.

(ii)In case of overlimit/temporary/adhoc limit in overdraft or cash credit account permitted with prior approval, 1% over the rate of interest applicable in the account should be charged for the period for which the overlimit/temporary/ adhoc limit is granted.

(iii)In case of forced debits resulting in overdraft in current account or overlimit in overdraft/cash credit account, then 9.25% over Base Rate i.e. 19.45% and 2% higher than the rate of interest applicable to the account is to be recovered.

(iv)In case the overdraft/overlimit/temporary adhoc limit remains unpaid beyond the period for which it is granted, penal interest at 2% p.a. is to be recovered over and above the applicable rate as stated in i) and ii) above.

1. Drawals against un-cleared effects

(i)8.00% over Base Rate i.e. 18.20% p.a.

(ii)If the return of such cheque/s causes temporary overdraft in current accounts, then interest at 9.25% over Base Rate i.e. 19.45% should be charged on the amount of TOD for the actual period of temporary overdraft.

(iii)If the return of such cheque/s causes Temporary overlimit in Overdraft/Cash Credit Account , interest at 9.25% over Base Rate i.e. 19.45% should be charged on the overlimit, till regularisation.

(iv)In case the cheque against which such payment is allowed, is subsequently returned unpaid, branches should recover actual out of pocket expenses relating to “Return of Cheques” subject to minimum charges as applicable from time to time.

VIOTHER PERSONAL LOANS (irrespective of the size of the advance)

Category of advances Rate of Interest

(% p.a.)

1.Fully secured against

a)Govt. of India Relief Bonds

(Br. Cir. No.96/39 dt. 14.06.02 and 98/224 dt.04.02.05)

Card Limit :ExistingRevised

(w.e.f. 20.01.2014)

Short term other than OD 13.25%13.20% (BR+3.00)

Term Loans 13.75%13.70% (BR+3.50)

Overdrafts 14.25%14.20% (BR+4.00)

b)National Savings Certificates (NSC), 13.75%13.70% (BR+3.50)

Indira Vikas Patras (IVPs),

Kisan Vikas Patras (KVPs), LIC Policies

c) Public Sector Bonds, Shares 13.75%13.70% (BR+3.50)

and Debentures Units of mutual funds

including UTI, etc, Stockash Scheme.

(Br. Cir.No.98/133 dt. 28.09.04)

d) Assured Returns Scheme (ARS) Bonds (guaranteed by Govt. of India)

(Br.Cir.No.98/60 dt. 03.07.04) 12.00%11.95%

e) Units of debt oriented mutual funds 12.50%12.45%

(Br. Cir. No.99/36 dt. 30.05.06)

f) Warehouse receipts 12.50%12.45%

(In modification of Br. Cir. No.99/169 dated 13.02.06)

g) Gold Ornaments/Articles 13.00%12.95%

(Br.Cir. No.106/171 dated 22.01.2013, 107/153 dtd 06.11.2013

and 107/187 dtd 11.01.2014)

(2.75% over Base Rate)

2. Against Bank’s Term Deposit Receipts (FDR/SDR/MIC/RD/DBD/Cash Certificate)

a) Domestic/NRE Deposits

i) Where the deposit stands in the name of the borrower -

2% per annum higher than the rate of interest payable on relative deposit.

ii) Where the deposit stands in the name of third party/parties both for personal advances and business activities interest is to be charged at 2% higher than the rate of interest payable on the relative deposit or 14.50% (existing 14.50% BPLR), whichever is higher.

Notes :

• NBGLCCs are authorised to approve rupee loan against domestic/NRE deposits to the depositors and to third parties at rates upto 0.75% above the corresponding deposit rate. The request for concession in rate of interest below 0.75% over deposit rate can be considered by EDLCC on case to case basis, the request shall be sent with Cost Benefit analysis.

• ZLCC are authorised to consider/approve concessional rate of interest in the range of 1% p.a. over the relative deposit rate in respect of loans/advances against Bank’s rupee term deposits to the depositors (both residents and non-residents) and to third parties.

• Sanctioning authority may approve rates of interest upto 1.75% above Base Rate for advances against the Bank’s Domestic/NRE Term Deposit receipts to third party for business purpose provided the rate of interest is not less than 2% higher than the rate of interest payable on the relative deposit. These rates are the lowest rate upto which the sanctioning authority may negotiate taking into consideration the circumstances and are not to be offered as a matter of routine

b) Rupee advances against FCNR-B deposits /RFC

Where the deposit stands in the name of the borrower or third party/parties

ExistingRevised

i) Loans Base Rate + 4% i.e. 14.25% 14.20%

ii)Overdraft or Cash CreditBase Rate + 5% i.e. 15.25% 15.20%

NBGLCC and Head Office are authorised to approve rupee loans against FCNR deposits to the depositors and to third parties at rates above the corresponding deposit rate plus the relevant currency 1 year swap rate plus 75 bps. However it should be ensured that the rate charged on such loans should not be less than the rate payable on the Rupee Term Deposit of similar maturity.

As per RBI Circular No. RBI/2012-13/247/A. P. (DIR Series) Circular No.44 dated 12.10.2012, ‘in exercise of powers Foreign Exchange Management (Deposit) Regulations, 2000, that the banks may now grant loans against NR (E) RA and FCNR (B) deposits either to the depositors or the third parties as under:-

(HO IOM.:C&IC:AGK:2013-14:253 dated 23.04.2013)

Rupee Loans* in India
Loans against NRE/FCNR (B) Fixed Deposits / Rupee loans to be allowed to depositor/ third party without any ceiling subject to usual margin requirements.**
Foreign Currency Loans* in India/outside India
Loans against NRE/FCNR (B) Fixed Deposits / Foreign Currency loans to be allowed to depositor/ third party without any ceiling subject to usual margin requirements.**

*The term loan shall include all types of fund based /non-fund based facilities.

**In case of FCNR deposits, the margin requirement shall be notionally calculated on the rupee equivalent of the deposits in accordance with para 9(2) of Schedule -2 of Foreign Exchange Management (Deposit) Regulations, 2000.

Further, the facility of premature withdrawal of NRE/FCNR deposits shall not be available where loans against such deposits are to be availed of. This requirement may specifically be brought to the notice of the deposit holder at the time of sanction of the loan. The existing loans which are not in conformity with the above instructions shall continue for their existing term and shall not be rolled over/renewed. Other conditions as regards grant of loan against NRE/FCNR deposits shall remain unchanged.

Note :-

• Sanctioning authority may approve rates of interest upto 1.75% above Base Rate provided the effective rate on the advance is minimum 2% above the rate of interest payable on the deposit for advances against the Bank’s FCNR–B Deposit/RFC Deposits receipts to the depositor or third party.

• For the purpose of charging interest at 2% above the rate of interest payable on the relative deposit, the following are also considered as deposits of the borrower

-deposit standing in the name of the borrower jointly with another person i.e. the borrower must be one of the depositors;

-deposit in the names of all the partners or one or more partners of the firm, either singly or jointly with some other person/s not being partners of the firm, where an advance is granted to a partnership firm; and

-deposit standing in the name of the proprietor himself or in the name of the proprietor jointly with another person/s, where an advance is granted to a proprietary concern.

• Interest should be charged @ 1% over the rate payable on the relative term deposit on advances granted to a member/retired member of the Bank's staff or the spouse of deceased member/ retired member of the Bank's staff against the term deposit standing in their names.

ExistingRevised

3. Partly secured/clean advance 8.75% over BR i.e.19.00% 18.95%

with or without guarantee

4. Loans For Branch Premises - (New Accounts after 01.12.2003)

Size of the Limit ExistingRevised

Upto Rs.2 lakhs 4% over Base Rate i.e.14.25%14.20%

OverRs.2 lakhs 5% over Base Rate i.e.15.25%15.20%

Note :

The periodical revision of interest rate would not be made applicable to Premises Loans and the rates of interest charged at the time of sanction would remain unchanged.